Small Agency Meeting SMART and SH A RP Update

1. Small Agency MeetingSMART and SHARP Update June 11, 2009

2. Welcome

3. Meeting Agenda • Welcome • SHARP Updates • Project Status and Activities • Decisions • Meeting Wrap-Up

4. SHARP Fiscal Year 2010 Pay Changes Minimum Wage Change • In anticipation of the Federal Minimum Wage Change to $7.25 per hour beginning July 24, 2009 and the Kansas Minimum Wage Change to $7.25 per hour beginning January 1, 2010 pay grades 005 and 006 will be removed from the Classified Pay Plan effective June 14, 2009.  • Job Classes on grade 005 (Seasonal Worker and Foster Grandparent (State)) will move to grade 007; those on grade 006 (Seasonal Worker Senior and Lifeguard) will move to grade 008.  Employees whose current hourly rate is below step 4 of the new grade will move to the new step 4.  All others will move to a new step whose hourly rate is the same as the hourly rate on their current grade (in other words, with no increase). • The revised pay matrix will be issued via an Executive Directive.

5. SHARP Fiscal Year 2010 Pay Changes Market Adjustments • There are 89 affected classes and the increases are being done through either pay grade changes and step increase(s), pay grade change and employee moves step-to-step, or step increase(s) only (no grade change).  The details will be in the Executive Directive. • The job classes are listed at http://www.da.ks.gov/newpayplans/2010marketadjustments.pdf • As of 6-14-09, the pay grade will change for 4,975 positions; 4,828 employees will receive an increase through one of the above-mentioned processes.  Implementation details are still being worked out.  DPS will do their best to implement the changes via batch processes in time for the 6-14-09 pay period cutoff so that agencies don't have to do any manual pay adjustments.

6. Longevity Bonus Reminders KSA 75-5541 was modified by the 2008 Kansas Legislature to include a new subsection that states “(h)   The provisions of this section shall not apply to any state officer or employee who is employed or re-employed as a state officer or employee on or after June 15, 2008.” If an employee separated from the State prior to June 15, 2008 and subsequently returns, the employee will not be eligible for a longevity bonus regardless of his or her length of service.  However, if the person was laid off prior to June 15, 2008 and comes back to active classified service under the provisions of K.A.R. 1-6-23 (Reemployment) they would still be eligible to receive a longevity bonus.

7. Longevity Bonus Reminders, Con’t If an employee was previously eligible for a longevity bonus, moves to a position in the unclassified service (that is not eligible), and returns to a classified position after June 15, 2008, provided there was no break in service with the State, that employee would be eligible for the longevity bonus.   In order for the Longevity automation in SHARP to work properly, it is imperative you enter the correct Hire or Rehire action and reason codes as you appoint employees in Job Data.  Please refer to the Action/Reason Code Guide located at http://www.da.ks.gov/sharp/documents/actionreasonuserguide.pdf for information on the usage of these codes.

8. Project Status and Activities

9. Shared Services • The post go-live support organization will include a shared services center • Will process transactions for participating agencies • Lessons learned in other statewide implementations indicate the need • Similar to approach used by “paper agencies” at SHARP go-live • Not a substitute for support…support will be available to online agencies • Criteria for identifying agencies will include: • Low headcount • Low transactional volume • Transactions processed by Dept. of Administration today • Agency desire to participate

10. Shared Services (continued) • Next steps: • Agencies respond to Sunflower Project to indicate interest • Sunflower Project reach out to agencies to confirm level of participation • Determine rate structure • Agency considerations • Can lower the pre-implementation burden of end user training • Use shared services for selected transactions on a temporary basis • Complete training on those transactions post go-live • Transition to fully online over time • Consider using shared services for a subset of your agency’s transactions • For example, complete your agency’s high-volume transactions online, but use shared services for other transactions • Please email the Sunflower Project with questions or to indicate your interest (sunflowerfms@da.ks.gov)

11. Baseline Readiness Assessment • Thank you for responding! 96 agencies responded to questions about readiness for SMART go-live • Results help to: • Identify issues or risks across all agencies where additional attention is needed • Identify agencies requiring additional support • Sets the baseline for more frequent assessments as go-live approaches.

12. Agency Readiness Assessment Schedule

13. Configuration Activities • Many activities require agency input, but not necessarily a workshop • Activities help configure agency-specific values or functions in SMART • Optional office hours are generally available for individual agency questions • Please participate – doing so helps improve the usability of SMART at your agency • You will receive several activities between now and the end of June • Activities are specific to a PeopleSoft module (assets, projects, etc.) • Instructions help determine whether your agency should respond and who should attend • Submit one response per agency

14. Workshops Data Conversion Module Specific Workshops • Accounts Receivable Pending Item & Customer Conversion Workshop on Tuesday, June 16, 2009 from 1:00 to 2:30 p.m. •  Project Conversion Workshop on Thursday, June 18, 2009 from 10:00 to 11:30 a.m. •  Asset Conversion Workshop on Thursday, June 18, 2009 from 1:00 to 2:30 p.m. Workshops will be held at the Memorial Hall Auditorium, Room 210, 120 SW Tenth Ave., Topeka, Kansas Data Configuration Workshops • Program and Department ID ChartFields Configuration Workshop • June 15 – 18 (attend one 2 hour session) • Project Setup Configuration Workshop • June 16 – 18 (attend one 2 hour session) • Don’t forget… • Register online…one registration for each participant • Remote attendance is available for agencies outside Topeka • Contact sunflowerfms@da.ks.gov with any questions

15. Decisions

16. Chart of Accounts Approach is to publish as much detail as possible as it becomes finalized Chart of Accounts structure was published in April Project team will work with agencies to define detailed values in Build Phase (May – July, 2009)

17. Chart of AccountsGeneral Ledger Business Unit • One GL BU per agency • Requires additional set-up and maintenance effort by Accounts and Reports, but… • Provides more flexibility to configure SMART to agencies’ unique business needs • 5-digit numeric value = [ 3-digit agency number ] + 00

18. Chart of AccountsFund • 4-digit Fund codes in STARS will also be used in SMART • Funds may be added • Some Budget Units may be converted to funds • Funds may be removed • Some existing funds may be consolidated into a single statewide fund

19. Chart of AccountsAccount • Specifies the balance sheet account or operating account on the transaction • Expanding some catch-all categories to include more detail • Some accounts may be removed if no longer needed • 6-digit numeric value = [ pre-defined 1-digit account type code : 1 – Assets, 2 – Liabilities,3 – Equity, 4 – Revenue, 5 – Expenses, 7 – Transfers,9 – Statistical ] + [ current 4-digit STARS object codes ] + 0 [ allows for additional level of detail ]

20. Chart of AccountsDepartment • Identifies an organizational entity within the agency associated with the transaction • 10-digit numeric value = [ 3-digit agency number ] + [ 7-digit value defined by agency ] • Compare with STARS DeptID: 5-digit numeric value = [ 3-digit agency number ] + [ 2-digit division code ] • Agency defined • Task ID 157: Program and Department ID ChartFields Configuration Workshop

21. Chart of AccountsBudget Unit • 4-digit Budget Unit codes in STARS will also be used in SMART • Some Budget Units will be added, others will be removed or consolidated into fewer • This is Budget_Ref on the interface layouts • For example, INF02 on the voucher distribution line

22. Chart of AccountsProgram • Identifies a specific good or service provided in response to a social or individual need or problem • Enables the State to capture costs associated with a specific program • Work with Division of the Budget analysts to determine the 5-digit values • Task ID 157: Program and Department ID ChartFields Configuration Workshop • For some agencies there will be changes to the current5-digit PCA codes in STARS (newly defined values)

23. Chart of AccountsProject • Identifies the project associated with grant and project transactions • These transactions can cross budget years, funds, and departments • This chartfield is optional • 15-digit alpha-numeric value • Agency defined • Project IDs are created when a project is added in Project Costing Module • Not controlled centrally • Task ID 169: Projects Setup Configuration Workshop

24. Chart of AccountsService Location • Identifies a specific location (building or site) • Enables the State to capture costs associated with a specific location • This chartfield is optional • 5-digit alpha-numeric value • Will be defined during agency configuration activities • Agency defined

25. Chart of AccountsAgency Use • Used to fulfill agency-specific reporting requirements • This chartfield is optional • 10-digit alpha-numeric value • Will be defined during agency configuration activities • Compare with STARS Agency Use chartfield: 16-digit numeric value • SMART captures same information in other fields • For example, enter free form descriptions in designated Description fields • Agency defined

26. Interfund Processing • SOKI is being decommissioned • Interagency receivables and payables are recorded on the books • Selling agency enters a receivable in Accounts Receivable (AR) • Buying agency enters and pays the voucher in Accounts Payable (AP) • Each agency controls the entry and approvals of its side of the entry • May be entered via online entry, spreadsheet upload, or interface • Each agency can view both sides of the entry • Can initiate on either the AP or the AR side of the transaction • Both sides of the interfund transaction are associated and are released to process in SMART in the same cycle • Notification of the other agency is supported • Additional details expected soon

27. Auto-Numbering • SMART provides Auto-Numbering • Automatically assigns the next available number when entering transactions or adding data • Examples where Auto-Numbering is available include: • Journal Entries • Purchase Orders • Vouchers • Assets

28. Auto-Numbering (continued) • Other facts about Auto-Numbering • Auto-Numbering is unique by Business Unit • Your transactions are auto-numbered separately from other agencies’ transactions • Auto-Numbering is unique by Module • Your payables are auto-numbered separately from your assets • Agencies will have the option of using other numbering schemes (generally not recommended) • Manual numbering adds steps • SMART links transactions by Business Unit so “smart-numbering” schemes are not needed to identify transactions for a particular agency • Have a scenario in mind where Auto-Numbering is not best? • We want to hear about it. Email your Agency Readiness Liaison with details

29. DA-118 / Encumbrances • If the vendor is known: • Create a Purchase Order (PO) to encumber funds • Encumbrances will be reduced/liquidated as the vendors are paid • If the vendor is not known (fiscal year-end): • Record a ‘blanket’ encumbrance via the General Ledger (GL) • When vendor is identified • Create a journal to reduce the GL encumbrance • Create a PO and process a voucher to pay the vendor • Division of the Budget will have the opportunity to review all agency ‘blanket’ encumbrances • At fiscal year-end, DA-118 will no longer exist

30. Decisions TBD Year End Concurrent Processing Cutover Strategy

31. Questions?